Question: A project under consideration costs $300,000 with a five- year life and no resitual value. The required return is 15% and the income tax rate
A project under consideration costs $300,000 with a five- year life and no resitual value. The required return is 15% and the income tax rate is 21%. Annual unit sales are projected 15,000 units at a unit sales pricr of $20. The unit variable costs are $8 and cash fixed costs are $50,000 per year. Calculate, in units and dollars, the accounting breakeven, cash breakeven, and finance break even.
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